Negotiations with the KNF – How to Effectively Pursue Your Rights in Disputes with an Insurance Company?

What is the Polish Financial Supervision Authority (KNF) and what are its functions?

The Polish Financial Supervision Authority (KNF) supervises the banking sector, capital market, insurance market, pension market, as well as payment institutions, payment service offices, electronic money institutions, cooperative savings and credit unions, and the loan institution sector.

The key responsibilities of the KNF include:

• ensuring the proper functioning of the financial market,
• supporting its development and competitiveness,
• conducting educational and informational activities concerning the financial market,
• participating in the development of legal regulations concerning financial supervision,
• facilitating the amicable resolution of disputes between market participants, particularly between supervised entities and their customers,
• carrying out other duties arising from applicable legislation.

The purpose of financial market supervision is to ensure its stability, security and transparency, strengthen confidence in the financial system and protect the interests of its participants. Check the latest news about the financial market and the activities of the KNF.

Can the KNF help in disputes with an insurance company?

The Polish Financial Supervision Authority (KNF) may help in certain situations involving an insurance company, but its role is limited to specific actions. The KNF is not an authority that resolves individual disputes between customers and insurance companies. However, it may take the following actions:

1. Assistance in resolving disputes – it creates opportunities for the amicable resolution of disputes between policyholders and insurers. For this purpose, the Authority may initiate educational or informational activities that help the parties better understand insurance principles and the rights and obligations of both sides.
2. Monitoring complaints and interventions – it may receive complaints concerning the activities of an insurance company, particularly where the insurer violates legal regulations, fair competition rules or ethical principles in its relations with customers. The Authority may take appropriate measures, such as imposing sanctions on the insurer or requiring it to bring its practices into compliance with the law.
3. Issuing guidelines and recommendations – it may issue recommendations concerning practices used by insurance companies, particularly if it finds that their activities are inconsistent with the law or violate consumer interests. Although such recommendations are not mandatory, they may encourage an insurer to improve its practices.
4. Assistance in pursuing claims – although the KNF does not resolve individual cases, where serious problems arise concerning the payment of compensation or other claims, the Authority may intervene to clarify the situation, particularly if an insurance company is acting contrary to applicable law. Find out more about KNF guidelines concerning agreements with financial institutions.

It is worth adding that if a dispute cannot be resolved amicably, a consumer may also use mediation or arbitration and, as a last resort, take the matter to court. Has your complaint been rejected? You can refer the matter to the KNF.

What is mediation?

Mediation is a process in which an impartial mediator helps the parties reach a mutually acceptable solution to a dispute. Negotiations, on the other hand, involve direct discussions with a company representative aimed at reaching an agreement. In both cases, proper preparation is essential – gathering the necessary documents, carefully analysing the agreement and defining the objectives of the discussions. Arguments concerning a breach of the agreement or legal provisions may also be important. It is also important to remember the emotional aspect of the discussion – presenting your position calmly and factually may influence the insurer’s decisions. If mediation or negotiations are successful, it may be possible to obtain compensation or another form of financial redress.

What are the main differences between a mediation settlement and a mediation session?

A mediation settlement is the final outcome of the mediation process, in which the parties reach an agreement and sign a document formalising the agreed terms. A mediation session, on the other hand, is a stage of the process during which the mediator helps the parties exchange arguments and work towards a compromise. During the mediation session, the parties may present their proposals, discuss disputed issues, while the mediator supports the discussion and helps guide the parties’ demands. A mediation settlement is the final document that concludes the dispute, whereas a mediation session is the stage during which negotiations take place.

Application to the KNF

Submitting an application to the Polish Financial Supervision Authority (KNF) concerning an insurance company can be an important step in pursuing your rights when you are dissatisfied with the insurer’s decision or have concerns about its actions.

To submit an application to the KNF concerning an insurance company, you should:

1. Gather the documents – the insurance agreement, correspondence with the insurer and evidence of the losses incurred.
2. Prepare the application – describe the problem, attach the relevant documents and specify what action you would like the KNF to take, such as an intervention concerning a rejected claim.
3. Submit the application – you can do this online using the form available on the KNF website, by post or in person.

If you do not feel confident about submitting the application or need help gathering the appropriate documentation, it may be worth using the services of a claims law firm. Our specialists can help with:

• preparing an appropriate application to the KNF,
• analysing the case and determining whether there are grounds for intervention by the Authority,
• representing your interests in contacts with the KNF and the insurance company.

Working with our law firm can significantly increase your chances of success in negotiations with the KNF and the insurance company, as well as speed up the process of pursuing your rights.

Can KNF intervention speed up negotiations with an insurance company?

Intervention by the Polish Financial Supervision Authority (KNF) may influence the situation in negotiations with an insurance company, but it does not necessarily speed up the negotiations themselves. The KNF is responsible for supervising the insurance market and ensuring that insurers operate in accordance with the law and treat their customers fairly. If an insurer violates regulations or acts contrary to fair market practices, the KNF may intervene by issuing recommendations, imposing penalties or taking other measures aimed at ensuring compliance with the law.

However, KNF intervention does not necessarily speed up negotiations because the outcome of negotiations between the parties largely depends on their willingness to reach an agreement. If it is difficult to reach a settlement, KNF intervention may encourage an insurance company to act more transparently and assess claims fairly, but there is no guarantee that the negotiations will be significantly accelerated. In many cases, mediation or the assistance of a lawyer who can support you during negotiations may be a more effective solution.